I'm looking at an example where a fund has two investments of $25K in 5 companies (so total of $50K per company and total of $250K capital invested). So the breakdown for each PortCo in the Schedule of Investments shows two investments of $25K in each case, with the first line of the entry showing a total of $50K and the last line only showing $25K for some reason. Can this mean that the fund is currently only holding one of the two investments and thus the last line in each PortCo entry is just showing the fund’s current balance?
Here are some more details on the example I'm looking at:
Here are some more details on the example I'm looking at:
- Clicking on each Portfolio Company’s name, their respective “Founding Rounds” tabs seem to confirm that indeed the fund has made two $25K investments on each company. But the strange thing is that on the Schedule of Investments both investments appear with the same date (February 17, 2024) while on the “Founding Rounds” tabs they don’t (second investments are dated June 10 or June 17, 2024), which almost seems to be an error on the platform.
- Since there are 5 companies in the portfolio, each with two $25K investments from the fund, that’s a total of $250K in invested capital (which is confirmed in the Fund Overview section, under “Now / Investable Capital / Invested”), but in the Balance Sheet though the “Cost of Investments” is -$125,000 ($25K times 5 investments registered at cost) which appear to indicate the fund is currently only holding one of the two investment it made on each company.
- Balance Sheet also shows under “Cash and Cash Equivalents” a balance of +$115,000 (meaning $125,000 less $10,000 in Management Fees), which seems to indicate that the second $25K investment in each company hasn’t been made yet and the money is still the funds bank account. This will be unlikely if the investment dates on the Schedule of Investments were correct (February 17, 2024), but the fact that the dates on the second investments as per the “Founding Rounds” tabs is more recent (June 10 or June 17, 2024), it may be possible that the funds just haven’t been transferred to the portfolio companies yet and that’s why the last line on each portfolio company entry on the Schedule of Investments only shows one of the two investments.
